As someone fortunate enough to not have to think about paying living costs because I lived with my parents, I never fully understood the value of money until I got my first job. I will be honest, learning how to budget is overwhelming. There are so many resources – I did not know where to begin! Here’s what I found helpful when planning out my own budget for the first time.
1. Use an App
Writing down every transaction is time-consuming. I like to use an app, specifically Mint although there are many others, to help me track all the expenses. I find it helpful to track my spending based on my budgeting goals. I categorize my expenses, and the app lets me know if I have exceeded my targeted budget, which is really convenient. It also provides notifications for any upcoming bills, low balances in the account, and unusual activity. If you are a beginner budgeter like me, give this a try!
2. Contact an Enrolment Services Advisor
Initially, I was unsure how much I should budget and wanted some advice from a professional, so I booked an appointment with my Enrolment Services Advisor. My advisor, located in the Enrolment Services Advising Center, provided some helpful tips:
- Look at all my transactions and the remaining budget I have in an area like food, transportation, and entertainment once a week. It made it easier for me to stick to my budget as I was more aware of how much I was spending and how much I had left in my budget.
- Plan out a budget for the entire year: From compiling all the expected income and fixed expenses, I could see how reasonable my budget was. Initially, it felt like a waste of time drafting the plan because I didn’t think I would end up following it. Eventually, it gave me a sense of direction in what I needed to do to achieve my goals and made the process seem less overwhelming.
- Pay with actual cash instead of using credit/debit cards to meet my budget goal. This made it easier for me to keep track of how much money I had left to spend. After one or two months, I became more aware of my spending habits, which allowed me to manage my spending better.
Budgeting seems like a complicated task, but it is not as intimidating as it seems after getting started. I would love to learn more about your experience with budgeting and your tips in the comments below!
